Comprehensive Insurance: Factors That Drive Sales

Comprehensive car insurance is an integral part of auto insurance. While not required by every state, people view comprehensive coverage as an absolute necessity. So, how can an insurance agent stand out when selling a policy that already has a high demand?

Defining Comprehensive Insurance

Comprehensive insurance is a coverage policy that pays for replacing or repairing your vehicle in situations other than collision. For collision coverage, you’ll need collision insurance itself. The policy also covers incidents such as damages from vandalism, riot, theft, falling object, or fire. Furthermore, it also extends to damage from a natural disaster or hitting an animal.  

The most common occurrence of the incidents mentioned above are car thefts. Let’s check out some statistics you can use to back up the sales of comprehensive insurance: 

Statista Research Department’s list of top 10 states in the US, by motor theft cases per 100,000 inhabitants in 2018:   

  1. Alaska: 541.9  
  2. New Mexico: 485.8 
  3. Hawaii: 397.7 
  4. Oregon: 395.1 
  5. California: 392.3 
  6. Nevada: 392.3 
  7. Colorado: 380.5 
  8. District of Columbia: 369.1 
  9. Washington: 367.3 
  10. Oklahoma: 337 

NICB’s list of the 10 US metropolitan areas having the largest per-capita car theft rates and the number of vehicles reported stolen in 2018: 

  1. Albuquerque, New Mexico: 7,146 
  2. Anchorage, Alaska: 3,087 
  3. Bakersfield, California: 6,748 
  4. Pueblo, Colorado: 1,175 
  5. Modesto, California: 3,428 
  6. Redding, California: 1,037 
  7. Stockton, California: 4,287 
  8. Wichita, Kansas: 3,547 
  9. Vallejo, California: 2,404 
  10. St. Joseph, Missouri: 674 

The next common incident after theft is vehicle fire: 

A report on FEMA also states that “an estimated 171,500 highway vehicle fires occurred in the US from 2014 to 2016. This resulted in an annual average of 345 deaths, 1,300 injuries, and $1.1 billion in property loss. 

Here is a list of Statista Research Department’s total no. of highway vehicle fires reported in the US from 2014 to 2018, which shows an increasing trend: 

  1. 2014 – 167.5 
  2. 2015 – 174 
  3. 2016 – 173 
  4. 2017 – 168 
  5. 2018 – 181.5

Selling Points of Comprehensive Coverage

Selling Point 1: Demonstrate The Importance If Your Clients Lend or Finance Their Car  

If your clients lend or finance their car for purposes other than personal use, you might have the upper hand. Highlight the fact that not everyone who takes their car has a non owner’s insurance. And if an uninsured motorist causes damage to their car (other than collision), would they have enough funds for repairs?  Wouldn’t they want to protect their investment?  

They might not know how to secure their cars from risks they are not aware about. To demonstrate the importance of ensuring those risks, use the data on car theft given above. You can even sell collision and comprehensive policies at the same time to these lenders. They can be a great source of lead generation for insurance agents. 

Selling point 2: Clear The Misconception That Comprehensive Insurance Is Expensive 

People have a misconception that comprehensive car insurance is always more costly than third party insurance. But this is not true every time. It depends on the policies offered which differ widely based on the carrier and the type of vehicle. One example of such instances can be of high-risk motorists. Top risk drivers have a higher number of claims. This rise in demand can cause prices to rise. 

As comprehensive insurance is better than third party insurance, agents can pitch it to the clients. Agents can earn the trust of the clients by providing better coverage at a similar price.

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Selling Point 3: Present The Probability of Better Benefits  

While uncommon, some carriers provide additional benefits for the same coverage. For example, they provide the insured with another car – known as courtesy car – when their car is under repair. Furthermore, some carriers even offer coverage for breakdown as a bonus. Agents can look for such policies when selling policies to a hard-to-convert customer. 

Selling Point 4: Provide Clients With Some Instances To Help Them Relate 

Real-life examples can help clients realize and compare the costs of damages. It doesn’t necessarily have to be about car insurance. You can even show how the best motorcycle insurance you’ve got saved one of your clients from undesired expenses. Just provide them a sheet that summarizes the costs incurred and cost covered.   

People often ask for minimum coverage in the policy. But when it’s time to make a claim, the minimum insurance will cover just a small portion of the total cost. The rest of the money will come out of the insured’s pocket. If you can communicate this with the clients, then selling insurance will be easy. 

What You Should Communicate with Your Clients

  • Comprehensive coverage is directly proportional to the car valuation. Customers need to know the reason behind reduced coverage- owner vehicle depreciation. That way, they will not raise any questions later.
  • The coverages come with deductibles – an amount that the clients should pay from their pockets before the insurance provides them coverage.
  • You’re providing the best deals as per the client’s requirement.

All things considered; agents need to build a network with lenders. Lenders are most sensitive towards the protection of their cars, and agents can get the best shot of sales through them. That way, they can sell comprehensive insurance and collision insurance at the same time.  

As for deciding the amount of coverage, you can disperse policies concerning the amount of risk associated with the driver.  

Do you think Comprehensive Insurance is something worth looking at? Let us know if you have any queries on comprehensive coverage in the comments below!

Learn how you can flourish as an agent after one call!

Schedule a call right now and learn how you can ease your work, sell more, and increase your profits!

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